An accountant’s standard report issued after compiling the financial statements of a nonpublic entity should state that
A. I am not aware of any material modifications that should be made to the accompanying financial statements.
B. A compilation consists principally of inquiries of company personnel and analytical procedures.
C. A compilation is limited to presenting in the form of financial statements information that is the representation of management.
D. A compilation is substantially less in scope than an audit in accordance with GAAS, the objective of which is the * of an opinion.
Answer:C
C is corrent because a compilation report indicates that a compilation is limited to presenting in the form of financial statements information that is the representation of management.
A is incorrect because no such negative assurance is provided.
B is incorrect because a review, not a compilation, consists primarily of inquiries of company personnel and analytical procedures.
D is incorrect because the compilation report does not refer to an audit.
